Point72 Asset Management, L.P. is an hedge fund manager that only serves one particular client type: investment funds. This fee-only firm has hundreds of advisors managing client assets, and the firm earns its compensation from asset-based fees and performance-based fees.
If you’re looking for a firm that serves individual clients, this may not be the firm for you. SmartAsset's free financial advisor matching tool can help.
Point72 Asset Management Background
Formerly Stamford Harbor Capital, L.P., Point72 began its investment advisory operations in 2018. The Delaware limited partnership specifically shifted its focus to investment funds and pooled investment vehicles. The firm has offices in the U.S., Europe, Asia and Australia. Steven A. Cohen is Point72’s chairman, president and chief executive officer (CEO). Cohen is a well-known personality in the sports world, having purchased the New York Mets in 2020 for $2.4 billion.
Point72 became indirectly embroiled in and hurt by a dramatic short squeeze by Reddit traders, many of whom used the Robinhood trading app, on hedge funds that had been shorting GameStock shares. That short squeeze extracted billions from hedge fund Melvin Capital, in which Point72 had invested. Point72 reportedly provided Melvin Capital with $750 million in emergency cash and lost nearly 15% from the successful short squeeze.
Point72 Asset Management Client Types and Minimum Account Sizes
Point72 primarily provides investment advisory services to its private funds. The firm currently manages 17 pooled investment vehicle (funds), according to its Form ADV. As for minimum account size requirements, Point72 minimums range from $25,000 to $25 million.
Services Offered by Point72 Asset Management
Point72 specializes in portfolio management services for pooled investment funds. The firm does not offer financial planning, retirement planning, estate planning or family office services.
Point72 Asset Management Investment Philosophy
Point72 states in its Form ADV brochure that it aims to achieve each fund’s investment objective by focusing on long/short equity, systemic and global macro investment strategies. The firm’s funds also focus on active investment strategies, leverage, commodities and cash and cash equivalents.
Point72 mainly invests in equities, secured and unsecured debt, futures, forward contracts, options, convertible bonds and preferred stock, derivative instruments, equity or fixed income related instruments and contracts for differences. The may also pursue other streategies, including cryptocurrencies and similar ledger-based digital assets.
Point72 Asset Management Fees
Point72 typically charges advisory fees ranging from 1.50% to 2.85% annually, assessed on a fund’s net asset value and paid monthly in advance. In addition, it earns performance-based compensation calculated on net profits, often subject to loss carryforwards. Certain funds also reimburse Point72 for operational and research-related expenses, known as pass-through expenses. Fee structures and amounts vary by fund, and select investors may receive discounted terms through side letters or based on internal affiliations.
What to Watch Out For
Point72’s Form ADV lists a few regulatory action disclosures that involved its affiliates. One of them relates to an issue in 2013 when a Point72 affiliate paid disgorgement, interest and a penalty to settle a civil complaint by the Securities and Exchange Commission.
This firm doesn't serve individual clients. To find a firm that does, consider using SmartAsset's free financial advisor matching tool.
Opening an Account with Point72 Asset Management
You can set up an account with Point72 by visiting any of the firm’s offices, or by contacting an advisor over the phone.
All information is accurate as of the writing of this article.
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